The Riyadh Commercial Court has upheld at least six creditor appeals involving Saudi contractor Abdullah A.M. Al-Khodari Sons Co. (Al Khodari),
However, 20 other appeals filed against the company have been rejected, the contractor said in a bourse filing to the Saudi Stock Exchange (Tadawul) on Monday.
The following appeals have been accepted:
· The appeal filed by Riyad Bank for 4.32 million riyals ($1.15 million)
· The appeal filed by Alawwal Bank for 169.37 million riyals
· The appeal filed by Abdullah A. M. Al-Khodari Sons Co. for not including the debts of Al Salem Co. for air conditioner
· The appeal filed by Spaces Realty Co. for including the full balance of 5.88 million riyals
· The appeal filed by Abdullah A. M. Al-Khodari Sons Co. for not including the debt of Sultan Abdullah Al-Mtref Foundation
· The objection of Wael Abdulwali Abdulhamid for amending the due amount to be 227,324 riyals
In July 2019, the Dammam commercial court ruled to initiate Al-Khodari’s financial restructuring under the kingdom’s new bankruptcy law.
In January, the contractor appointed a new chief executive officer, Ali Hussain Al Busaleh, following an enquiry into the involvement of previous company officials in the awarding of some government contracts.
The investigation was announced after reports emerged that 10 previously awarded government contracts worth 994.05 million riyals had been withdrawn from the company.
The company estimated the losses from the projects’ withdrawal at 260 million riyals.
(Writing by Brinda Darasha; editing by Cleofe Maceda)
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© ZAWYA 2021